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Liberty Global Forward Rate of Return (Yacktman) %

: 43.18% (As of Jun. 2022)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Liberty Global's forward rate of return for was 43.18%.

The historical rank and industry rank for Liberty Global's Forward Rate of Return (Yacktman) % or its related term are showing as below:

LBTYK' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -3.04   Med: 12.73   Max: 43.46
Current: 42.39

During the past 13 years, Liberty Global's highest Forward Rate of Return was 43.46. The lowest was -3.04. And the median was 12.73.

LBTYK's Forward Rate of Return (Yacktman) % is ranked better than
95.62% of 274 companies
in the Telecommunication Services industry
Industry Median: 11.40 vs LBTYK: 42.39

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Liberty Global Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Liberty Global's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Liberty Global Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.29 10.90 15.99 11.62 38.59

Liberty Global Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.65 26.23 38.59 38.80 43.18

Competitive Comparison

For the Telecom Services subindustry, Liberty Global's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Liberty Global Forward Rate of Return (Yacktman) % Distribution

For the Telecommunication Services industry and Communication Services sector, Liberty Global's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Liberty Global's Forward Rate of Return (Yacktman) % falls into.



Liberty Global Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Liberty Global's Forward Rate of Return of Jun. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=4.8792381/22.09+0.2
=42.09 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Liberty Global  (NAS:LBTYK) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Liberty Global Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Liberty Global's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Liberty Global Business Description

Liberty Global logo
Address
161 Hammersmith Road, Griffin House, London, GBR, W6 8BS
Liberty Global is a holding company with interests in cable and telecom companies in the U.K., Netherlands, Belgium, Switzerland, Ireland, and Slovakia. Liberty is the owner of the main cable network in each of these geographies and has pursued a strategy since 2016 to merge or partner with mobile-network-operators to be able to offer converged services. Liberty also owns minority stakes in other media, entertainment, and cloud companies.
Executives
Drew Marisa D director 161 HAMMERSMITH ROAD LONDON X0 XO
Sanchez Daniel E. director C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Salvato Andrea officer: SVP, CHIEF DEVELOPMENT OFFICER 161 HAMMERSMITH ROAD LONDON X0 W6 8BS
Rodriguez Enrique officer: EVP, Chief Technology Officer 1221 AVENUE OF THE AMERICAS 37TH FLOOR NEW YORK NY 10020
Malone John C director, 10 percent owner 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Waldron Jason officer: SVP & CAO 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Wargo J David director C/O WARGO & CO 712 FIFTH AVENUE 41ST FLOOR NEW YORK NY 10019
Gould Paul A director 711 FIFTH AVENUE 9TH FLOOR NEW YORK NY 10022
Cole John P Jr director 1919 PENNSYLVANIA AVE N.W. STE 200 WASHINGTON DC 20006
Dvorak Bernard G officer: EVP & Co-CFO C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Karsten Diederik officer: EVP, European BB Ops C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Sparkman J C director 201 EAST SANDPOINTE 8TH FLOOR SANTA ANA CA 92707
Curtis Miranda director C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112

Liberty Global Headlines

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